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THE EFFECT OF INTERAL AUDIT ON THE-PERFORMANCE-OF-PRIVATE-FIRMS (A STUDY OF ANAMBRA MOTOR MANUFACTURING COMPANY)

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THE EFFECT OF INTERAL AUDIT ON THE-PERFORMANCE-OF-PRIVATE-FIRMS (A STUDY OF ANAMBRA MOTOR MANUFACTURING COMPANY)


CHAPTER ONE
INTRODUCTION

1.1. Background of the Study
Internal audit is a management tool used in ensuring transparency in conduct of business. Auditing took the entire stage after the industrial revolution since before this period, transactions increased, precipitated by the development of large corporations, limited liability companies, there became the need for divorce of ownership from control. Hence mangers and shareholders became two different partners. Then it became apparent for mangers to render accounts of their stewardship to those who has pooled their resources together for the business .it is noteworthy that an independent person be appointed to represent the interest of the shareholders in reviewing the report of mangers to ensure accuracy and transparency. This is how auditing started.

We have two types of sectors. Public and Private sectors. Public sector is the governments initiate and control in economic activities with the aim of rendering services at a breakeven point.
The private sector is the private initiative aimed at profit/wealth maximization for the owners Mill champ (1996) defines internal audit as an independent appraisal function within an organization for the review of system of control and the quality of review of systems of control and the quality of performance as a service to the organization.

The papers seek to empirical and statistically ascertain the impact of the internal audit in the private sector of the Nigerian economy, while the private sector of the economy is studied at large; the case study MB ANAMCO Ltd, Emene, Enugu is particularized.

 1.2. Statement of the Problem

The private sector according to Anyanwu (1993; 25) is that part of the economy not under direct government control. It entails production and distribution that is in private hands. It serves as a complement to the public sector since increased public sector efficiency results from improvements and places government in a better position to focus on the objectives, conduct and performance of those enterprises that remain in the public sector (Hamming and Mansoor 1987).




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